Refer to Figure 16-11. In the graph above, the shift from AD1 to AD2 represents the total change in aggregate demand. If government purchases increased by $50 billion, then the distance from point A to point B ________ $50 billion
A) would be greater than B) would be equal to
C) would be less than D) may be greater than or less than
A
Economics
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Which of the following is true of perfect competition but not true of monopoly?
a. The firm's average total cost curve is U-shaped. b. Marginal revenue is equal to price. c. A profit-maximizing firm chooses output where marginal revenue equals marginal cost. d. Profits may exist in the short run.
Economics
Suppose n identical Cournot firms purchase labor in a competitive labor market. How is the market demand for labor affected by the number of firms in the market?
What will be an ideal response?
Economics